6 Reasons Why a Strong Brand is Important for Your Small Business
Beyond just a memorable logo, good branding increases the value of a company, provides employees with direction and motivation, and makes finding and retaining new customers easier. So what exactly is a brand?
The short answer is: Everything.
A brand represents the sum of people’s perception of a company’s customer service, reputation, advertising, and logo. When all of these parts of the business are working well, the overall brand thrives. On the flip side, we all probably know a company that offers excellent products or services, however has a damaged or failing brand due to poor customer service and delivery.
Let’s take a look at the important ways a strong brand impacts your business:
1. Branding Improves Recognition
One of the major components of your brand is your logo and visual language. Think of how we instantly recognize the golden arches of McDonalds or the simple, but powerful tick of Nike. As the “face” of a company, logo design is critical because that simple graphic will be on every piece of correspondence, advertising and social media platform. It is the face of your company, and often the first impression people make when interacting with your company. A professional logo design is simple enough to be memorable, but powerful enough to give the desired impression of your company. Remember, you don't get a second chance at first impressions.
2. Branding Creates Trust
A professional appearance builds credibility and trust. People are more likely to purchase from a business that appears polished and legitimate than one that looks unprofessional and uninspiring. Emotional reactions are hardwired into our brains, and those reactions are very real influencers.
3. Branding Supports Advertising
Advertising is another component of your brand. Both the medium chosen and demographic targeted for advertisements builds a brand. Too narrow an advertising focus, and a company risks being “pigeon holed” and losing their ability to expand into new markets. Too broad a focus, and the company fails to create a definable impression of the company in the minds of would be customers. Know your niche and target the audience you seek to attract.
4. Branding Builds Financial Value
Companies who actively invest in their brand and image build implicant value in their company by presenting themselves in the most professional and organised way. Ask yourself if you used a company that presented themselves professionally, would you assume they revenued a higher income of sales than a company with a poorer image. The truth is what you perecieve it to be, and much of this value is due to the branding of the company. A strong brand usually guarantees future business. The greater a company’s devotion to build its brand value, the better the financial return from its efforts.
5. Branding Inspires Employees
Many employees need more than just work— they need something to work toward. When employees understand your mission and reason for being, they are more likely to feel that same pride and work in the same direction to achieve the goals you have set. Having a strong brand is like turning the company logo into a flag the rest of the company can rally around. Having staff inspired and proud to work for you and your brand will not only guarantee staff loyalty but also help with positive word of mouth spread throughout their communities and networks. Get this wrong and it can have the equal and opposite effective effect.
6. Branding Generates New Customers
Branding enables your company to get referral business. Would it be possible for you to tell a friend about the new shoes you love if you couldn’t remember the brand? A large reason ‘brand’ is the word used for this concept is that the goal is an indelible impression. As the most profitable advertising source, word of mouth referrals are only possible in a situation where your company has delivered a memorable experience with your customer.
The most profitable companies, small and large, have a single thing in common. They have established themselves as a leader in their particular industry by building a strong brand.
If you're looking to build a strong brand, or want some advice on strengthening your brand, reach out and lets talk.